While researching for today’s financial news post, I had a problem that I’m not sure has happened in the past. I found TOO MANY good articles to write about! Now, they’re not exactly hard hitting journalism, but they are all something our readers/consumers should be aware of, and so I’ve decided to share them all. For the full story/article, you will need to click on the link and read it at the source.
- Majority of scrapped GM,Chrysler dealers file appeals - Basically, what’s going on here is that GM and Chrysler, in order to stay in business, had to cancel contracts with some of the dealerships that owned the rights to sell their cars. The dealerships, instead of finding a different product to sell, or closing down, are filing appeals to FORCE the 2 companies to keep supplying them with inventory or to pay a huge settlement. This will cost the already struggling automakers (remember, they were bailed out already) even more money, and they probably will struggle with getting back on track and making a profit. I hate that these dealerships will have to close and that jobs will be lost, but when a company expands too far and has to draw back to stay in business, this is what happens. By trying for a settlement (these dealerships agreed to the terms of the contract, they knew the contract could be terminated), they are actually hurting the company more. Nice.
- Toyota’s next problem: Lawsuits - With the multitude of recent news stories and recalls, Toyota is working around the clock to combat the bad press and sort out their problems. It might not help, though, thanks to the over 30 lawsuits (already, and growing) and class action suit (there will probably be more later) that are already filed against the automaker. Here’s the deal…Toyota should pay for any medical bills (and final expenses etc.) of those people found to have directly been injured or died because of a faulty piece of equipment in the vehicle, and I have no doubts in my mind that they would willingly pay these costs. There are 2 problems that stink with this situation though; 1. Some lawyers just see dollar signs and think of a big payday, so they will file suit for ANYTHING, even things their client doesn’t deserve, and some judges will award it, which just causes more financial problems for the automaker, and could cost jobs for their employees, and 2. the more lawsuits and such that are filed, the more bad press they receive, which could also cost money/employee’s jobs.
- Your cell phone company’s dirty little secret - The big carriers have come out recently and lowered their prices on the “voice usage” side, or the “talk time” side of their business, but their secret is that they’ve started charging non smartphone users a fee to access the multimedia capabilities of their phones, whether they want to or not. They say it’s because most people don’t know they can access the net, so they are making sure the user gets full use of their phone. I say bull crap. I shouldn’t be forced to purchase a service I don’t want. I have a smartphone and DO NOThave a data package, because I don’t need one. I did not buy the phone for it’s ability to surf Facebook, I bought it for other features like touch screen/qwerty keyboard/nice layout/and a calendar. Maybe it’s more phone than I needed, but that’s my choice. They know that people pick the phone they want, and so they figure they can charge you extra for service, because you like the phone. It’s sneaky, but clever.
- The burger and beverage recession - This one actually surprised me, but not in a bad way. Coca cola, McDonald’s and Molson Coors all reported that their product demand is stronger abroad than in the US. These are the products that we think of as recession proof, but apparently, people are still not willing to part with their dollars for them! I very much hope that the companies can cut costs and innovate to continue to be profitable, but I am very excited that consumers continue to be wise with their money. Spending less and saving more is a proven way to have something for yourself as you get older. Are there quicker, more volatile ways? Of course. But with great gains comes great risks.
Follow the links to see the full articles!
